By Akintunde Oyedokun
Research Analyst
Oil prices fell for the fourth straight session as U.S. crude inventories surged, OPEC+ raised supply, and trade tensions escalated over new U.S. tariffs.
Brent dropped $1.74 (2.45%) to $69.30, while WTI fell $1.95 (2.86%) to $66.31, both hitting multi-year lows before a slight rebound.
The U.S. reported a 3.6 million-barrel stockpile increase, exceeding forecasts. Canada and China retaliated against tariffs, raising concerns over economic growth and oil demand.
Canada’s Services Sector Slumps Amid Trade War Fears
Canada’s services economy weakened in February as businesses held back on new deals due to tariff concerns. The Business Activity Index fell to 46.6, marking a third month of decline.
Uncertainty over U.S. trade policies led to job cuts and the steepest drop in new export business since 2020. The broader economy also struggled, with manufacturing activity contracting for the first time in six months.
U.S. Services Grow Amid Inflation and Tariff Concerns
The U.S. services sector grew unexpectedly in February, with rising input costs signaling inflation risks. New tariffs on imports from Mexico, Canada, and China have added uncertainty, with businesses reporting pricing chaos and forecasting challenges. The ISM Services PMI rose to 53.5, indicating sector expansion despite weakening consumer spending and homebuilding.
With the economy slowing, the Atlanta Fed forecasts a 2.8% GDP contraction this quarter. The Federal Reserve faces a tough choice as inflation pressures rise while economic growth loses momentum.
Egypt’s Inflation Forecasted to Drop to 14.5% in February
Egypt’s inflation is predicted to fall to 14.5% in February, down from 24.0% in January, due to the fading impact of previous high price hikes, according to a Reuters poll of 15 analysts. The base effect is expected to drive the significant drop, though a seasonal increase is likely due to Ramadan. Inflation had previously surged to a record 38% in September 2023 but has been gradually declining since. Analysts also forecast core inflation to decrease to 15.4%. Official inflation figures will be released by CAPMAS on Monday.
BDC Operators Face Challenges As Parallel Market Rates Fall Below Bank Forex Sales
Bureau De Change (BDC) operators, represented by the Association of Bureau De Change Operators of Nigeria (ABCON), are unable to purchase foreign exchange from banks, as parallel market rates have dipped below interbank sales to BDCs. ABCON President Aminu Gwadebe acknowledged the naira’s recent stability but urged the Central Bank of Nigeria (CBN) to regulate sales of diaspora remittances and investment proceeds to BDCs to prevent illegal economic behaviors. He also called for continued fiscal measures to curb inflation and support the naira.
